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How Australia’s New Visa Policy Will Impact Its Tourism Industry

by Hyacinth

Australia’s rising student visa rejection rates are becoming a significant concern for international students, particularly those aiming to study tourism and travel. Although Australia remains a popular destination for education, especially in the post-pandemic era, the increasingly stringent visa application process is creating hurdles for many students. This tightening of visa rules not only affects students but also has broader implications for the global tourism industry, which depends heavily on educational travel.

Global Effects on Tourism and Travel Education

Australia’s new visa policies are impacting both individual students and the international tourism education sector. Known for its top-tier tourism research institutions, Australia attracts thousands of students from around the world each year. However, the recent barriers have made it harder for students to settle and focus on their studies. This trend could shift global tourism students’ preferences to other countries with less restrictive visa policies, potentially benefiting those nations.

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For instance, students from countries like Vietnam, which has seen a rise in visa applications, are experiencing lower approval rates. Vietnam, among the top six countries sending students to Australia, saw applications grow from 18,700 in 2022-2023 to over 24,400 the following year. Despite this increase, the approval rate has dropped to 76%, the lowest in 18 years. This trend reflects a broader tightening of approval procedures for students from major source countries.

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Challenges for Tourism Students

The Australian Department of Home Affairs lists six main reasons for visa refusals among tourism students: incomplete documents, failure to respond to additional information requests, dishonest study intentions, falsified documents, insufficient English proficiency, and inadequate proof of funds.

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Honesty and Documentation: One common issue is dishonesty in applications. For example, lacking a genuine offer letter or submitting false documents can lead to automatic visa refusals. Authenticity is crucial not only for entering Australia but also for succeeding in a field like tourism that values trust and credibility.

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Proof of Finances: Another major hurdle is proving financial capability. Students must demonstrate they can cover travel, tuition, and living expenses, with the minimum living cost set at AUD 29,710 (USD 20,090) per year. The 20% increase in financial proof requirements makes it harder for students, particularly those from countries with weaker currencies, to show they can afford to study and live in Australia.

Impact on the Tourism Industry

The strict visa policies are impacting the broader tourism industry. With fewer foreign students entering Australian schools, the education tourism sector faces a potential downturn. This is concerning for the tourism industry, which relies on new talent. Many international students pursue degrees in hospitality and tourism and often remain in Australia to contribute to these fields. A decrease in student numbers could lead to a shortage of skilled professionals, affecting sectors crucial to the Australian economy.

In the short term, students unable to secure Australian visas might turn to other countries like the United States, Canada, or the United Kingdom for their education. This could weaken Australia’s position as a leading destination for tourism education while offering other nations a competitive edge in developing tourism and travel education hubs.

Visa Processing Times and Student Experience

Visa processing times in Australia average 50 days but can extend up to four months. This lengthy wait can disrupt students’ plans and lead them to reconsider their options, especially if facing tight academic deadlines. Additionally, changes such as real student testing and increased IELTS requirements are adding to the challenges, making it harder for students to prove their intent to study.

These stringent measures are affecting students’ educational planning. The uncertainty around visa approvals is deterring many from pursuing tourism courses in Australia, leading them to explore other options to achieve their educational and career goals.

Changes in Visa Policies and Student Prospects

The tightening of Australia’s student visa rules is having a lasting impact on students and the tourism sector. For those studying tourism, these changes could hinder their access to a world-class education in one of the most sought-after study destinations. Moreover, reducing the post-graduation stay period from four years to two years limits graduates’ opportunities to gain practical experience, further constraining their career prospects.

Key Issues:

1. Financial proof requirements have increased by 20%.

2. IELTS scores must now range between 6.0 and 6.5.

3. Visa applicants are required to pass a genuine student test.

These stricter financial, documentation, and English proficiency requirements are making it increasingly difficult for students, particularly those interested in tourism studies, to obtain an Australian student visa. While Australia remains a popular study destination, these growing challenges could shift student interest to countries with more flexible policies, potentially impacting Australia’s international student numbers and its education and tourism industries in the long term.

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